You have been provided with the following information:

	Total
Sales	$	70,000
Less variable expenses		45,000
Contribution margin		25,000
Less fixed expenses		15,000
Operating profit	$	10,000

If sales increase by 20%, what level of fixed costs will yield a 30% increase in profits?

$10,500.

$17,000.

$6,000.

$18,000.